Soitec stock leads SBF 120 index, +25.5% in one week
The stock of the Isère-based semiconductor substrate manufacturer is leading the SBF 120 this Monday, extending an upward movement initiated last week. The momentum follows the upward revision of annual growth forecasts announced in early September, which had already propelled Soitec to the top position of the index on several occasions. The session also sees the stock break through a notable resistance level, in an overall sluggish Paris market.
Breaking resistance at €133.5 consolidates a weekly jump of 25%
The stock gained 5.73% to €135.65 in trading, after closing Friday at €128.30. The movement is part of a weekly momentum of 25.6%, itself driven by the upward revision of its revenue growth forecast for Q2 to approximately 50% on a year-on-year basis, announced on September 2, driven by accelerating demand for its Photonics-SOI business. During the session, the stock broke upward through its resistance at €133.5 and maintained this level, which constitutes the salient technical development of the day.
The value is trading significantly above its three moving averages: the 20-day MA at €116.83 (16.1% gap), the 50-day MA at €110.08 (23.2% gap) and the 200-day MA at €79.92 (nearly 70% gap). The RSI at 49 remains in neutral territory, far from indicating any directional excess despite the magnitude of the weekly rebound.
Divergent analyst views as valuation reaches elevated levels
Two analyst views were published this Monday on the analyst consensus on Soitec, with opposing readings. Berenberg raised its price target from €129 to €135 and maintained a "hold" rating, a level that roughly corresponds to the current price (€135.65), leaving no upside potential at this stage. Jefferies takes greater caution by also raising its target, from €85 to €98, but maintains an "underperform" rating — representing a downside gap of nearly 28% from the current price.
These upward revisions of targets are mechanically explained by the stock's recent surge, but both houses remain below the current price, signaling a valuation deemed stretched. Based on expected earnings per share, according to the consensus of surveyed analysts, the stock trades at approximately 207 times current fiscal year earnings, and nearly 48 times next fiscal year's. The next identified resistance at €192.20 remains distant, while support at €96.20 is now far below the current price.
